Work Opportunity Tax Credits (WOTC)

Benefits

A federal income tax credit is available for hiring individuals that are members of certain targeted groups. Generally, the credit is from $2,400 to $9,000 depending on the targeted group of the new employee. In order to qualify for this credit, each new employee must be certified in accordance with IRS regulations. These credits can be carried back one year and carried forward up to 20 years. More significantly, beginning in the tax year 2007, these credits may be claimed against a company’s Alternative Minimum Tax (AMT).

Each year hundreds of millions of dollars are claimed by companies large and small. Are YOU getting your fair share?

WOTC Targeted Groups (indicating maximum credit)

  • Designated Community Residents age 18-39 ($2,400)
  • Qualified Food Stamp Recipients age 18-39 ($2,400)
  • Qualified TANF (welfare) Recipient ($2,400)
  • Qualified Long-Term TANF (formerly Welfare-to-Work Credit)($9,000 over 2 years)
  • Supplemental Security Income (SSI) Recipients ($2,400)
  • Vocational Rehabilitation Referral ($2,400)
  • Qualified Veteran ($2,400) 
  • Disabled Veteran ($4,800) – Expired 2010
  • Disconnected Youth‚ age 18-24-NEW 2009 GROUP ($2,400) – Expired 2010
  • Summer Youth ($1,200)
  • Hurricane Katrina Employees (category expired August 29, 2009) ($2,400)

Our Services

  • Design, implement and manage the process to screen all job applicants and new hires for tax credit eligibility;
  • Submit all forms and documentation to the designated certifying agencies;
  • Track all WOTC applications until certifications are issued;
  • Provide client reports and support for all tax credit related operations;
  • Provide interim (monthly or quarterly based on client preference) and
  • Annual Wage and Credit reports of actual tax credits obtained.

For more information contact us.